Optimizing Global Virtual Teams for Innovation
Optimizing Global Virtual Teams for Innovation
[Link]/[Link]
Managing
Managing virtual teams for open virtual teams
innovation in Global Business for OI
Services industry
Lee Heng Wei 1285
School of Business, KDU Penang University College, George Town, Malaysia and
Received 16 August 2017
School of Management, Universiti Sains Malaysia, Revised 20 September 2017
Minden Heights, Malaysia Accepted 1 October 2017
Ramayah Thurasamy
School of Management, Universiti Sains Malaysia,
Minden Heights, Malaysia, and
Simona Popa
Universidad Catolica San Antonio de Murcia, Murcia, Spain
Abstract
Purpose – The purpose of this paper is to investigate the impact of human dimensions, team climates, and
technological features on Global Virtual Team (GVT) performance in the Malaysian Global Business Services
(GBS) industry. Attention has also been paid to examine the moderating effect of team diversity and the
extent of virtuality on GVT performance.
Design/methodology/approach – Data were collected using structured questionnaire and tested
using partial least square – structural equation modelling. The authors collected 263 sample and
the assessment of reflective measurement models, structural model, reliability and validity were conducted
subsequently.
Findings – This paper found that team climates like team cohesion, team confidence, and team knowledge,
skills, and abilities demonstrated different impact on the human dimensions which include trust and
creativity. It will then subsequently affect GVTs’ performance. Besides, team diversity which comprised of
three major components that include age diversity, functional diversity, and attitudes/values diversity was
found to moderate the relationships between the antecedents and consequent. In spite of that, the extent of
virtuality was found to have no moderating effects on the relationships between the team creativity and
trust and perceived team performance.
Originality/value – As nowadays an increasing number of firms are becoming global, inquiring into GVTs
efficient management is of crucial importance for successful implementation of open innovation practices,
while GBS companies could represent the most suitable setting to examine the GVT’s underlying principles.
This paper integrates adaptive structuration theory with input-mediator-output-input model to provide a
holistic study on GVTs’ performance. In addition, this study also illustrated how the extent of virtually can be
measured quantitatively.
Keywords Team performance, PLS, Adaptive structuration theory, Global virtual team,
Mediator-output-input model
Paper type Research paper
1. Introduction
1.1 Open innovation and Global Virtual Teams (GVT)
Nowadays an increasing number of firms are relying more on collaboration networks in
order to share knowledge and foster innovation (Huggins and Thompson, 2015; Messeni
Petruzzelli et al., 2009). This emergent trend towards opening the innovation process has
been first identified by Chesbrough (2003) as “open innovation” (OI). The basic premise of OI
is managing inflows and outflows of knowledge for improving internal innovation and Management Decision
maximising its external exploitation (Cheng and Shiu, 2015; Martinez-Conesa et al., 2017). Vol. 56 No. 6, 2018
pp. 1285-1305
The establishment of this new concept and its coincidence in time with the growing interest © Emerald Publishing Limited
0025-1747
for outsourcing, offshoring, collaboration, organisational agility and flexibility permitted DOI 10.1108/MD-08-2017-0766
MD researchers to reconsider innovation strategies in the light of an increasingly networked
56,6 world (Huggins and Thompson, 2015). As enterprises, customers and working force has
increasingly dispersed across the world, companies had to embrace GVT. Accordingly,
effective collaboration between globally distributed employees has become essential for
improving innovation and creating competitive advantages (Castellano et al., 2016). In this
context, Global Business Services (GBS) emerge as a new wave of business models that offer
1286 companies access to innovations, skills and expertise across the globe. While outsourcing
and offshoring have started initially in one region, GBS companies hold the potential
advantage that they operate globally or multi-region both in terms of delivery as well as
consumption (Wirtz et al., 2015).
OI permits firms to explore outside knowledge and to externally exploit existing internal
resources in order to gain competitive advantages (Martinez-Conesa et al., 2017). In the specific
context of GBS companies, efficient flows of knowledge are even more relevant because the
industry competes on an intangible globally oriented basis. At the same time, GBS companies
have advantages over locally oriented firms in that they are more likely to benefit from outside
knowledge due to socio-cultural diversity of GVTs. However, despite the great pressure of
business environment trends, some authors found that many firms are still reluctant to open
up their innovation strategy through the use of OI practices (de Wit et al., 2007). Previous
literature suggests that besides firm demographics (size, age, market share, location or
ownership), organisational culture and employees’ characteristics have a significant impact on
the adoption of OI practices (Harison and Koski, 2010; Huizingh, 2011). For instance, the
resistance of employees and lack of internal commitment have been pointed out as strong
barriers to the adoption of OI practices (Chesbrough and Crowther, 2006; Van de Vrande et al.,
2009). In the case of GBS, promoting openness and collaboration is even more challenging due
to cultural, language and status barriers and geographic distance that may appear between
members of GVT (Manning et al., 2015). This draws attention on the importance of GVT
management for successful implementation of OI practices. As a consequence, inquiring into
the factors that enhance the performance of GVTs is imperative while GBS companies could
represent the most suitable setting to examine the GVT’s underlying principles.
Team Confidence
• Team potency Trust 1289
• Team efficacy
Perceived
Team
Team KSA
Performance
• Communicating virtually
KSAs
Creativity Figure 1.
• Collaborating virtually Research model
KSAs
This factor has been depicted in previous literature as a key antecedent of team performance
(Nootjarat et al., 2015). For instance, Paul et al. (2016) suggest that effective team cohesion in
GVTs will create a positive impact on trust and improve overall GVT’s performance.
Through virtual interaction and collaboration among team members, a climate of trust can
be developed (Brahm and Kunze, 2012). Likewise, a cohesive team creates a shared context
in which team members are engaged constantly and therefore provides a safe and open-
minded environment for effective communication to occur, which utterly is a catalyst for
innovation. Thus, this study hypothesises that:
H1. There is a positive relationship between team cohesion and trust.
H2. There is a positive relationship between team cohesion and creativity.
3.4 Trust
Trust creates a strong emotional bond with the virtual team member that promotes
cognitive flexibility and creative thinking (Lee, 2015). The literature shows a general
consensus on that trust plays an important role in generating new ideas. Equally important,
trust enables the team member to interact with one another safely with their uncertainty and
vulnerability resolved (De Jong and Elfring, 2010). Thus, team trust has been identified in
previous studies as a predictor of the goodwill directed towards governing institutions and
sharing information with stakeholders (Gilmour et al., 2015; Turner et al., 2016). Similarly,
the team with a high level of trust is usually depicted as having a cohesive social
relationship in which team members will help each other to achieve their goals (Chang et al.,
2014). Thus, given the evidence that trust is related to creativity and performance, this study
proposes the following hypothesis:
H9. There is a positive relationship between trust and creativity.
H10. There is a positive relationship between trust and perceived team performance.
4. Research methodology
4.1 Data collection
The research population in this paper refers to the group of GVT members working in a MSC
Status Company – under the GBS cluster. According to an Outsourcing Malaysia Report
(Captain, 2015), in 2015 a total of 66,055 individuals were working in the GBS cluster.
This paper used a snowball sampling method suggested by Chang et al. (2014) to collect the
sample data. Data collection was initiated by sending an invitation e-mail to the HR
department of each of the companies listed in the MSC companies’ directory – under the GBS
cluster to be forwarded to potential respondents. A total of 393 e-mails were sent and yielded
32 responses. The referral chains started with the 32 personnel who indicated their interest in
this study, and an online questionnaire was sent to them. After they completed the
questionnaire, they were asked to forward the online questionnaire to other potential
respondents they believed to meet the qualification criteria. The eligibility of the respondents
was verified through the first two questions asked in the questionnaire (Are you currently a
virtual team member? and, How long have you worked as a virtual team member?). In order to
control and engage the qualified respondents, respondents will be excluded from this study if
their answer is “No” to the first screening question. Second, their experience as a virtual team
member must be at least one year in order to be included in this study. As such, a total of 305
responses were collected with 42 responses being discarded due to qualification conditions not
being satisfied. The remaining 263 responses were used.
criterion variable was also estimated. The moderating effect was confirmed if the interaction
effect was significant by running the bootstrapping procedure with 5,000 samples.
The analysis of the moderating effect showed that the effect of the interaction terms
(team diversity × team cohesion; team diversity × team confidence) on trust was significant
( β ¼ −0.107, t ¼ 2.744; β ¼ −0.143, t ¼ 2.365). As such, the moderating effect of team
diversity on the relationship between team cohesion and team confidence on trust was
confirmed. Similarly, the interaction terms (team diversity × team cohesion; team
diversity × team confidence; team diversity × communicating virtually KSA; team
diversity × collaborating virtually KSA) on creativity was significant ( β ¼ −0.150,
t ¼ 2.806; β ¼ −0.137, t ¼ 2.955; β ¼ −0.114, t ¼ 2.374; β ¼ −0.125, t ¼ 2.551). Interaction
plots was plotted to illustrate the moderation effects (Figures 3-8). However, the remaining
paths stipulated in the research model not significantly moderated by team diversity.
As such, H12, H13, H14, H15, H17, and H19 are accepted. While, H16, H18, H20, and H21
are rejected. Table III shows the detailed results.
1 2 3 4 5 6 7
1. Team cohesion
2. Collaborating KSA 0.788
CI0.90 [0.714; 0.858]
3. Communicating KSA 0.712 0.892
CI0.90 [0.641; 0.779] CI0.90 [0.832; 0.948]
4. Team Confidence 0.100 0.143 0.162
CI0.90 [0.083; 0.185] CI0.90 [0.113; 0.212] CI0.90 [0.109; 0.251]
5. Creativity 0.167 0.269 0.058 0.759
CI0.90 [0.094; 0.278] CI0.90 [0.171; 0.375] CI0.90 [0.059; 0.159] CI0.90 [0.694; 0.818]
6. Perceived team performance 0.450 0.473 0.339 0.173 0.277
CI0.90 [0.358; 0.538] CI0.90 [0.369; 0.574] CI0.90 [0.232; 0.445] CI0.90 [0.085; 0.278] CI0.90 [0.170; 0.376]
7. Trust 0.712 0.447 0.443 0.232 0.302 0.529
CI0.90 [0.609; 0.822] CI0.90 [0.309; 0.599] CI0.90 [0.309; 0.582] CI0.90 [0.143; 0.337] CI0.90 [0.199; 0.424] CI0.90 [0.457; 0.605]
Managing
1295
virtual teams
for OI
Table II.
HTMT analysis
MD
56,6 Team Cohesion
0.566***
–0.068 Trust
(R2 = 0.374)
0.168***
Team
Confidence 0.423***
1296 0.627***
Perceived
Team
0.116** Performance
0.079 (R2 = 0.227)
Communicating 0.156***
virtually KSA
–0.115 Creativity
2
(R = 0.537)
–0.076 0.292***
Collaborating
virtually KSA
Figure 2.
Results of main effects
Notes: The dotted line represents non-significant effect. **p < 0.05; ***p < 0.01
4.5
3
High Team
2.5 Diversity
Figure 3. 2
Moderation effects
of team diversity 1.5
on team cohesion
and trust 1
Low Team Cohesion High Team Cohesion
Diversity
3 1297
High Team
2.5
Diversity
2
Figure 4.
1.5 Moderation effects of
team diversity on
1 team cohesion and
Low Communicating High Communicating creativity
Virtually KSA Virtually KSA
4.5
3
High Team
2.5 Diversity
2
Figure 5.
1.5 Moderation effects of
team diversity on
1 collaborating virtually
Low Collaborating High Collaborating KSA and trust
Virtually KSA Virtually KSA
4.5
Diversity
3
High Team
2.5 Diversity
2 Figure 6.
Moderation effects of
1.5 team diversity on
team confidence and
1 creativity
Low Team Confidence High Team Confidence
MD 5
56,6 4.5
Creativity
Diversity
3
1298 High Team
2.5 Diversity
2
Figure 7.
Moderation effects of 1.5
team diversity on
collaborating virtually 1
KSA and creativity Low Collaborating High Collaborating
Virtually KSA Virtually KSA
4.5
Diversity
3
High Team
2.5 Diversity
Figure 8. 2
Moderation effects of
team diversity on 1.5
communicating
virtually KSA and 1
creativity Low Communicating High Communicating
Virtually KSA Virtually KSA
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MD Appendix
56,6 Variables Source
Team Cohesion Carron et al. (1985)
• I like the amount of activity I get in this GVT
• I like the activities done in this GVT
• I enjoy my social interactions within this GVT
1304 • If this GVT was to end I would miss my contact with other participants
• Our GVT is united
• Members of our GVT enjoy helping each other if work needs to be done to
prepare for the activity sessions
• Members of our GVT would likely spend time together if the GVT were to
end
• We are good friends in this GVT
Face-to-face … %
Memo/letter … %
E-mail … %
Chat … %
Teleconference (via audio connection; telephone) …%
Corresponding author
Simona Popa can be contacted at: [Link]@[Link]
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